Silver Price Forecast – Silver Gaps Higher to Kick Off Friday Session

Silver markets have been very bullish during the trading session on Friday as we in the week on the right foot. All of that being said, we rally all the way towards the $28 level before giving back early gains. When I look at the chart, it is easy to see that the $28 level is significant resistance, so it should not be a huge surprise that we have found it to be a bit too much. Ultimately, I think this market probably finds a reason to go higher, if for no other reason than the fact that stimulus will probably throw a lot of demand out there.

SILVER Video 01.02.21

The US dollar of course is a crucial component to how the silver market behaves, so pay close attention to whether or not it is rising or falling as there is a significant inverse correlation between the two markets. Because of this, if we see the US dollar really break down, then silver could go looking to get above $28 quickly, to reach towards the $30 level from a longer-term standpoint. To the downside, the gap obviously will offer some support near the $26 level, and I think that the 50 day EMA also comes into play just below and the $25.43 handle. After that, the $24 level has been strong support in the past and I would expect it to continue to be so in the future. The 200 day EMA currently sits at the $23.10 level, and I consider that to be a “floor in the market” for the uptrend. Recently though, I think we have been more or less trying to build a base for the next shot higher.

For a look at all of today’s economic events, check out our economic calendar.